An Economic Analysis of Marketing Costs, Price Spread and Marketing Efficiency of Milk in the Visakhapatnam District of Andhra Pradesh, India

Abstract

The present study was undertaken to know the Marketing cost and margins, Price spread, Marketing efficiency of Buffalo and Cow milk. The study has been undertaken in the Paravada block of Visakhapatnam district. A total of 100 sample respondents are analyzed. Among these 55 are small farmers, 34 are medium farmers and 11 are large farmers. For buffalo milk, in channel-I, the overall average net price received by the producer is Rs. 49.43, and the consumer purchase price is Rs.56.07. In channel-II, The overall average net price received by the producer is Rs. 46.34, and the consumer purchase price is Rs.58.55. In channel-III, the net price received by the producer is Rs. 39.23, and the consumer purchase price is Rs.60. For cow milk, in channel-I, the overall average net price received by the producer is Rs. 36.50, and the consumer purchase price is Rs.45.22. In channel-II, The overall average net price received by the producer is Rs.33.93, and the consumer purchase price is Rs.48.87. In channel-III, the net price received by the producer is Rs.30.50, and the consumer purchase price is Rs.50. Market efficiency revealed that for buffalo milk Market efficiency of channel-I is high with 8.4, market efficiency revealed that for cow milk Market efficiency of channel-I is high with 5.18. Farmers should focus on the marketing channels where there are fewer intermediaries and can attain maximum profits. There is a need for an up gradation of the dairying technologies like for milking, usage of milking machines is more sophisticated than following the traditional methods.